New International Tax Arrangements (Participation Exemption and Other Measures) Act 2004 (96 of 2004)

Schedule 2   Foreign branch income, non-portfolio dividends and listed countries

Part 2   Non-portfolio dividend exemption: main amendments

Income Tax Assessment Act 1936

4   Section 23AJ

Repeal the section, substitute:

23AJ Certain non-portfolio dividends from foreign countries not assessable

A non-portfolio dividend (as defined in section 317) paid to a company is not assessable income, and is not exempt income, of the company if:

(a) the company is an Australian resident and does not receive the dividend in the capacity of a trustee; and

(b) the company that paid the dividend is not a Part X Australian resident (as defined in that section).